13 Jul 2023 17:04

Novak: Companies will decide for themselves whether to reduce production or export this August, goal is to reduce supplies to world markets

KRASNOYARSK. July 13 (Interfax) - Russian oil companies will decide for themselves whether to cut oil production in August or exports, but Russia's goal is to reduce supplies to world markets, Russian Deputy Prime Minister Alexander Novak commented to journalists.

As reported, Russia decided "to voluntarily cut supplies to oil markets by 500,000 bpd in August by reducing exports by the indicated amount," without saying whether production would also be cut.

"We announced we would reduce oil supplies to world markets 500,000 bpd in August [in addition to the decision to reduce production 500,000 bpd from March 2023]. This decision will balance the market during a period of low demand. And this means we will ship less, Russia will ship less to world markets," he said.

"Companies will independently decide how to act: either they will either reduce exports or reduce production. But in general, our task is to reduce supplies to world markets," he replied when asked if production would decline.

The Deputy Prime Minister also said that Russia's oil production forecast for 2023 has not changed from 515 million tonnes. "This is taking into account decisions already made to reduce production. For 2024, the forecast is currently in process," Novak said.